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Downtown Wilmington tax hike proposal back in the mix

The St. Patrick's Day Parade and Festival took place in downtown Wilmington on Saturday, March 16, 2013. The Ancient Order of Hibernians organized the parade that began on N. Front St. and ended on Water St. and Cool Wilmington Productions and The Downtown Business Alliance sponsored the event.

Published: Thursday, March 21, 2013 at 12:41 p.m.

Last Modified: Thursday, March 21, 2013 at 12:41 p.m.

Plans for a special district that would raise taxes in Wilmington's central business district to support downtown events and promotions have re-emerged.

Two years ago, Wilmington Downtown Inc. planned to pitch the idea to City Council, but shelved the proposal after a vocal push back from some stakeholders.

This time, Councilman Charlie Rivenbark wants the matter to be part of the city's annual budget discussions.

In the short term, Rivenbark hopes council will direct city staff to further study the proposal and return with options, including the amount of a possible tax increase for the central business district.

If that happens, the council would be moving the proposal – officially dubbed the "municipal service district" – back in the mix at a critical time when they are preparing to make decisions about next year's funding.

The proposal could gain traction if city leaders eye it as a possible source of revenue to help support downtown events.

Wilmington officials have been grappling with the cost of supporting more than a dozen events that draw half a million people downtown. As events expand or move downtown, the city has to spend more to support them as workers help with clean-up or other services.

Earlier this month, Rivenbark sent a memo that said the service district would, in part, direct costs from events directly to people who are benefiting from them and the additional services.

Rivenbark also said the service district could fund the "Bring It! Downtown" campaign, a marketing effort designed to lure residents and visitors alike to the downtown area. The city has an agreement to funnel $30,000 in the city's parking enterprise fund designated for marketing to the Bring It! Downtown effort.

Proposed before

About two years ago, Wilmington Downtown Inc. President and CEO John Hinnant presented a plan to increase taxes for property owners in the central business district by 10 cents for every $100 of assessed property tax value. The increase would have brought in $385,093 annually.

Elsewhere, cities such as New Orleans and Charleston, S.C., use similar districts as tools for downtown redevelopment and upkeep.

In the Port City, WDI had proposed using the money to fund an ambassador program whose members would report criminal activity to police and provide services such as litter pickup, graffiti removal and hospitality. The money could have also supported events or promotions, such as a shopping and a dining guide.

"There was some backlash," Hinnant said. "When we pushed it in 2010, the timing wasn't very good."

But Hinnant said his group stands ready to support the council if it decides to move forward with the idea.

"I think council is sitting there scratching their heads, ‘How do we pay for all this stuff?' " Hinnant said.

Could it pass?

Rivenbark said he doesn't want to pursue the district if it's "a slam dunk against."

"I think there's reason to believe there may be greater support," Rivenbark said this week.

He said he doesn't think anybody would say the district is a completely bad idea.

Yet some property owners may oppose a tax increase. Last time the district was proposed, Hunter Ford, the owner of Momentum Surf and Skate on Front Street, rented his space. Now, he owns it.

"I'm just not willing to give up my money for stuff we should get anyway," Ford said this week. He was never impressed with the idea of the ambassadors downtown.

"I don't need some idiot walking around downtown in a red ambassador shirt acting like a police officer," Ford said, adding that downtown business owners already serve as ambassadors.

Mayor Bill Saffo said he can see the benefits of a district, but he acknowledged that a tax increase would be difficult.

"I think we'll have a discussion about it," the mayor said. "Whether it goes anywhere, I don't know."

<p>Plans for a special district that would raise taxes in Wilmington's central business district to support downtown events and promotions have re-emerged.</p><p>Two years ago, <a href="http://www.starnewsonline.com/section/topic9936"><b>Wilmington Downtown Inc.</b></a> planned to pitch the idea to City Council, but shelved the proposal after a vocal push back from some stakeholders.</p><p>This time, Councilman <a href="http://www.starnewsonline.com/section/topic74"><b>Charlie Rivenbark</b></a> wants the matter to be part of the city's annual budget discussions.</p><p>In the short term, Rivenbark hopes council will direct city staff to further study the proposal and return with options, including the amount of a possible tax increase for the central business district.</p><p>If that happens, the council would be moving the proposal – officially dubbed the "municipal service district" – back in the mix at a critical time when they are preparing to make decisions about next year's funding.</p><p>The proposal could gain traction if city leaders eye it as a possible source of revenue to help support downtown events. </p><p>Wilmington officials have been grappling with the cost of supporting more than a dozen events that draw half a million people downtown. As events expand or move downtown, the city has to spend more to support them as workers help with clean-up or other services.</p><p>Earlier this month, Rivenbark sent a memo that said the service district would, in part, direct costs from events directly to people who are benefiting from them and the additional services. </p><p>Rivenbark also said the service district could fund the "Bring It! Downtown" campaign, a marketing effort designed to lure residents and visitors alike to the downtown area. The city has an agreement to funnel $30,000 in the city's parking enterprise fund designated for marketing to the Bring It! Downtown effort.</p><p>Proposed before</p><p>About two years ago, Wilmington Downtown Inc. President and CEO <a href="http://www.starnewsonline.com/section/topic9938"><b>John Hinnant</b></a> presented a plan to increase taxes for property owners in the central business district by 10 cents for every $100 of assessed property tax value. The increase would have brought in $385,093 annually.</p><p>Elsewhere, cities such as New Orleans and Charleston, S.C., use similar districts as tools for downtown redevelopment and upkeep.</p><p>In the Port City, WDI had proposed using the money to fund an ambassador program whose members would report criminal activity to police and provide services such as litter pickup, graffiti removal and hospitality. The money could have also supported events or promotions, such as a shopping and a dining guide.</p><p>"There was some backlash," Hinnant said. "When we pushed it in 2010, the timing wasn't very good." </p><p>But Hinnant said his group stands ready to support the council if it decides to move forward with the idea. </p><p>"I think council is sitting there scratching their heads, 'How do we pay for all this stuff?' " Hinnant said. </p><p>Could it pass?</p><p>Rivenbark said he doesn't want to pursue the district if it's "a slam dunk against." </p><p>"I think there's reason to believe there may be greater support," Rivenbark said this week. </p><p>He said he doesn't think anybody would say the district is a completely bad idea.</p><p>Yet some property owners may oppose a tax increase. Last time the district was proposed, Hunter Ford, the owner of Momentum Surf and Skate on Front Street, rented his space. Now, he owns it.</p><p>"I'm just not willing to give up my money for stuff we should get anyway," Ford said this week. He was never impressed with the idea of the ambassadors downtown. </p><p>"I don't need some idiot walking around downtown in a red ambassador shirt acting like a police officer," Ford said, adding that downtown business owners already serve as ambassadors.</p><p>Mayor <a href="http://www.starnewsonline.com/section/topic72"><b>Bill Saffo</b></a> said he can see the benefits of a district, but he acknowledged that a tax increase would be difficult. </p><p>"I think we'll have a discussion about it," the mayor said. "Whether it goes anywhere, I don't know." </p><p><I></p><p>Julian March: 343-2099</p><p>On <a href="http://www.starnewsonline.com/section/news41"><b>Twitter</b></a>: @julian_march</i></p>